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Exercise 17-20 (Algo) Pension spreadsheet [LO17-8] Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets. (Expected return on plan assets, $38) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset ($ in millions) $ 520 33 Prior service cost-AOCI (amortization $7 per year) Net gain-AOCI (any amortization over 10 years) 74 (23) $ 604 ($ in millions) $ 460 48 23 (14) (23) $ 494 ($ in millions) $ 60 49 92 Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

Exercise 17-20 (Algo) Pension spreadsheet [LO17-8] Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets. (Expected return on plan assets, $38) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset ($ in millions) $ 520 33 Prior service cost-AOCI (amortization $7 per year) Net gain-AOCI (any amortization over 10 years) 74 (23) $ 604 ($ in millions) $ 460 48 23 (14) (23) $ 494 ($ in millions) $ 60 49 92 Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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($ in millions) Balance, January 1, 2024 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net gain Gain on PBO Cash funding Retiree benefits Balance, December 31, 2024 $ PBO Plan Assets 0 $ 0 Prior Service Cost-AOCI $ 0 Net Gain- AOCI $ Pension Expense 0 $ 0 Cash Net Pension (Liability) / Asset $ 0
Transcribed Image Text:($ in millions) Balance, January 1, 2024 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net gain Gain on PBO Cash funding Retiree benefits Balance, December 31, 2024 $ PBO Plan Assets 0 $ 0 Prior Service Cost-AOCI $ 0 Net Gain- AOCI $ Pension Expense 0 $ 0 Cash Net Pension (Liability) / Asset $ 0
Exercise 17-20 (Algo) Pension spreadsheet [LO17-8] Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets (Expected return on plan assets, $38) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset ($ in millions) $ 520 33 Prior service cost-AOCI (amortization $7 per year). Net gain-AOCI (any amortization over 10 years) 74 (23) $ 604 ($ in millions) $ 460 48 23 (14) (23) $ 494 ($ in millions) $ 60 49 92 Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Transcribed Image Text:Exercise 17-20 (Algo) Pension spreadsheet [LO17-8] Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets (Expected return on plan assets, $38) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset ($ in millions) $ 520 33 Prior service cost-AOCI (amortization $7 per year). Net gain-AOCI (any amortization over 10 years) 74 (23) $ 604 ($ in millions) $ 460 48 23 (14) (23) $ 494 ($ in millions) $ 60 49 92 Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
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